Asian Development Bank to extend a loan worth $500 million

Kazakhstan’s Government, Damu Small Entrepreneurship Development Fund and Asian Development Bank have signed a framework agreement worth $500 million to support small and middle-sized business in Kazakhstan, Press Service of the Ministry of Economic Development and Trade reports. The framework agreement envisages a multi-tranche mechanism of financing the program to support small and middle-sized business. According to the agreement, Damu Small Entrepreneurship Development Fund will receive the first tranche worth $150 million before the end of May 2011. The loan is provided for five years. Asian Development Bank had carried out due diligence procedures to define partners for the program. Kazkommertsbank, CenterCredit and Alliance banks have been designated as partners. According to the ADB’s policy, loans to small businesses will be extended at market rates (currently standing at 14%). The program will cover all cities of Kazakhstan, with 40% of the loans extended outside Almaty and Astana. Priority will be given to companies working within the frameworks of the Business Roadmap-2020 Program.